The Bottineau pioneer. (Bottineau, N.D.) 1885-1895, 1887-06-23
LONG AND SHORT HAULS.
The interstate Commission Finally Renders 4
Decision on the Fourth Section Of the
Law.
The Railroad Companies Allowed to Be Guided
BY Their Own Judgement In Constructing
q. <ha AIT ee.

The Railroad Companies Allowed to Be Guided
BY Their Own Judgement in Constructing
the Act. - 49, '
Washington, June 15.-The Interstate
commerce commission rendered tonight
the long-expected decision upon the fourth
section OF the interstate act. which pro.
tation OF. passengers n property over
9 shorter than q longer distance
in the same direction under SUBJ
stantially similar circumstances
and conditions" The decision was made
upon the petition OF the Louisville & Nash
vile and other railroad companies which
were among the first to apply for relief
from the operation OF the fourth sector;
The decision comprises more than 10, 600
words. The most important feature is
the announcement that the commission,
after mature consideration, is satisfied
that the statute does not require it,
in every instance OF 81 exceptional case,
to grant its order for relief. The decision
says:
Before tho carrier is at liberty in it's de-
parture from the general rule, the carrier
must Judge for itself what are "substanti.
ally similar circumstances and condi-
tions.' which preclude a special rate, re-.
bate or drawback which is made unlawful
by the law, since no tribunal is empowered
to Judge for it until after the carrier has
acted; then only for the purpose OF deter
mining whether it's actions constitutes q
violation OF law. The carrier judges on
peril OF tho consequences; but the special
rates, rebate or drawback which it grants
are not illegal when it turns out that the
circumstances aud conditions were not
| such as forbid it,; and as congress clearly
intended this. it must also, when using the
same words in the fourth section, have in.
tended that the carrier whose privilege was
in some way limited by them. should act
upon its judgment OF limiting circum-
stnnces and conditions. The commission
therefore, will not undertake to decide in
advance what constitutes or what does
not constitute discrimination under Sub
stantially similar circumstances and con-
ditions," but will leave the railroad COM
panies in fixing their tariffs to act upon
their own judgment and at their risk, sub
ject to accountability before the commits.
sion and the courts in cases where com.
plant is made by interested parties Of
violation Of the law.
TO GUIDE THE
For the guidance, however, OF railroad
companies the commission has considered
at great length nearly all questions raised
under the fourth section OF the law, and
has reached conclusions which are sum-
married. as follows:
First-The prohibition in the fourth Sec
ton against a greater charge for O shorter
than for q longer distance over the sumo
line in the same direction, the shorter be-
ing included within the longer distance, as
qualified therein, il limited to cases in
which circumstances and conditions are
substantially similar.
Second-The phrase under substantially
similar circumstances and conditions" in
the fourth. section, is used in the same
sense as in the second section; and under
the qualified form OF prohibition in the
fourth %section,. carriers are required to
Judge in the first instance with regard to
similarity ordissimilarity Of circumstances
and conditions that forbid or permit a.
greater charge for a shorter distance.
Third-The judgment OF carriers in re-
speet to circumstances and conditions is
not final. but subject to the authority OF
the commission n courts TO decide
whether an error has been committed or
whether the statute has been violated:
and in case OF a complaint for violation OF
the fourth section OF the act, the burden OF
proof is on the carrier to justify any de-
parture from the general rule prescribed
by the statute, by showing circumstances
and conditions, substantially dissimilar.
~Fourth-The provisions Of section /, re-
quiring charges to be reasonable M just,
and OF section 2, forbidding unjust dis
elimination, apply when exceptional
charges are made under section 4, as they
do in other cases.
Fifth-The existence OF actual competi-
ton which is OF, controlling force in respect
to traffic may make out dissimilar circum.
stances and conditions emitting
the carrier to charge less
for q longer than for a shorter haul over
the same line in the same direction, the
shorter being included in the longer in the
following cases: ~ When competition is
with carriers by water which are not sub.
ject to the provisions OF the statute. az
When the competition is with foreign or
other railroads which are not subject to
the provisions OF the statute. (3) In rare
and peculiar cases of competition between
railroads which are subject to the statute
when the strict application OF the general
rule OF the statute would be destructive OF
compitition. $685. =.
sixth-When d greater charge in the ag.
geegate is made for the transportation OF
passengers or like kind OF property for q
shorter than for a longar distance over
the same line in the same direction, the
shorter not being included in the longer dis
lance, it is Insufficient justification there.
lore that traffic which is subjected to such
greater charged is way orlocal traffic, andthat
which is given more favorable rates is not,
nor is it sufficient justification for such
kT0dUc CudIko Vllt cL1okO utbul VII ulOIo
| expensive to the carrier unless when the
circumstances, are such as make it excep-
tionally expensive or long haul traffic ex-
| c%eptionally inexpensive, the difference be-
ing extraordinary and susceptible ofproof;
| nor that a lesser charge o. q longer haul,
merely q continuation OF favorable rates
| under which trade enters, or individual es-
Establishments have been built up. The
| fact that long haul traffic will only bear
| certain. rates Is no reason for carrying it
for less than cost at the expense OF other
| traffic. "" -. p 49,,
CONSIDERED IN DETAIL -"
Considering the cases governed by the
| fifth section in the above abstract the COM
mission takes up the first, competition with
carriers by water, and says:
| stances exist, and many will be found,
along the routes OF the petitioners lines in.
Kentucky, Tennessee, Georgia, Alabama,
Mississippi and Louisiana, three compel.
| ing waterways force down railroad rates
| below what it is possible to make them at
noh-competitive points and still maintain
the roads with success or efficiency. The
| only question is whether competition is
kept within proper bounds. Low rates are
q necessity OF THE situation, and if rail-
roads compete with water transportation,
either on ocean or navigable rivers; they
have no choice but to accept such rates.
the general rule laid down by the fourth
section would necessitate their abandon:
! ment OF, some classes OF business in
which their competition. with wa
ter transportation is now of pnblic
Importance. The railroads must either
be allowed to compete with vessel owners,
and make low charges for that purpose. or